PBGC Issues New Table for Use by Involuntarily Terminating DBs

The table is used to determine expected retirement ages for participants.

The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule on Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age.

This rule amends the agency’s regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2017.

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This table is needed in order to compute the value of early retirement benefits and, thus, the total value of benefits under a plan.

The effective date of the final rule is January 1, 2017.

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